South Africa Wine Exports to China Increased by Nearly 30% in 2015

Tycoon Koos Bekker sells wine from his vineyard all over the world, but a small detail offers a clue as to where his priorities may lie — all the bottles are labelled in Mandarin. Other producers along the Stellenbosch wine routes where his Babylonstoren farm is located are doing the same, looking to tap into soaring demand in China led by a growing professional class as Asia’s economic powerhouse in turn ramps up its investments in SA…Full Article: BD Live May 2016

Key Points

From 2010 to 2020, Chinese wine consumption is expected to increase from 11.3 million hectoliters to 13.5 million hectoliters.

In 2015, South Africa’s La Motte (see Leopard’s Leap Wines) approximately 3-million bottles to China thanks in part to Perfect China, an online distributor.

From 2014 to 2015, according to the South African Wine Industry Information and Systems, South African wine exports to China increased by just under 30%.

ChinaAg Comments

From 2012/2013 to 2015, Guangdong’s Perfect China imported approximately 10 million bottles of South African wine into China.

In November 2015, a delegation from South Africa’s Western Cape government, led by Helen Zille, visited China.

From 2013 to 2014, mainland Chinese imports of bottled South African wine increased from 4.5 million liters to 5.1 million liters. Also from 2013 to 2014, Hong Kong imports of bottled South African wine decreased from 690,212 liters to 641,147 liters.

In September 2013, South Africa’s Bayede, a marketing organization, stated it would export 12,400 bottles of newly branded wines (4 containers worth), in addition to the 200,000 bottles it exports every year to China (each bottle sells on average for CNY 400 or US$65).

In August 2013, Perfect China purchased a vineyard and storage cellar in South Africa’s Val de Vie estate, located ~70 km east of Cape Town.

From 2011 to 2012, approximately 25% (~2.8 million bottles) of South Africa’s wine exports were from the country’s “L’Huguenot” brand.

Established in 1994 and headquartered in Zhongshan City, Guangdong, Perfect (China) Co., Ltd is a subsidiary of Malaysia’s Perfect Resources that manufactures/sells health foods, skin and beauty products, and other household goods. Through its joint-venture company, Perfect Wines of South Africa (PWSA), the company imports L’Huguenot brand wines (e.g. Shiraz wines and Shiraz-Pinotage blends) from South Africa. The JV was established in 2011 and is 51% owned by Yangzhou Perfect (a division of Perfect China) and 49% by South Africa’s Leopard’s Leap Wines, which includes La Motte and De Klerk Presidential Blend. As of 2015, Perfect China’s President was Swee Lian Woo, a Malaysian-Chinese businessman. In addition to South Africa, his company has operations in Hong Kong, Thailand, Malaysia, Indonesia, Singapore, Taiwan and Vietnam.